Durable Goods headlines Misleading and thus its a short trap.
Novice shorts have been mislead by the Durable Goods numbers which at first glance look like they dissappointed. But on further investigation you find out the numbers were really impressive when you take out auto's. Many people delayed buying new cars when they found out that Cash for clunkers was going to pass. Why pass up $4,500 by buying a new car a month too early. Now looking forward next month the numbers should look dramatically better than this one.
July 29 (Bloomberg) -- Orders for U.S. durable goods, excluding automobiles and aircraft, unexpectedly gained in June, signaling that manufacturing may expand in the second half of the year.
Excluding transportation equipment, orders for goods meant to last several years climbed 1.1 percent, the most in four months, the Commerce Department said today in Washington. Total orders fell 2.5 percent, the first decrease in three months.
Full article here